Employee Moves - Limitations & Tax Liability
The payment of moving expenses, if approved, would be up to the amount the department has agreed to pay and is limited to:
- moving the contents of a single residence
- the cost of packing, shipping, and storage up to 30 days of household goods (personal effects and property)
- or moving a mobile home (any vehicle used as a home)
- incurring reasonable expenses for moving an automobile
- moving up to 15,000 pounds of household goods (not boats, etc.) by common carrier, rental truck or trailer, or a state-owned vehicle, when authorized
- purchasing insurance: against damaged goods provided it is limited to the normal liability
of the common carrier (approximately $.60/pound) unless a State University System
contract mover is used
- or when a State University System contract mover is used, based on the SUS negotiated rates
- or the approved payment for insurance for only the vehicle (not the contents) when using a rental vehicle or truck.
The costs of an SUS contracted mover include full replacement insurance. The employee is responsible for the cost of full replacement insurance if a non-SUS contracted mover is selected.
A new employee will provide an estimate from an SUS contracted common carrier or from a non-contracted mover prior to the move and submit them to the hiring department for inclusion with the request for payment.
Department shall submit the Request for Authority to Pay Moving Expenses and the purchase requisition prior to the move taking place. A purchase order number must be provided to mover before move can begin.
Self movers - an employee who elects to rent a moving vehicle/trailer can be reimbursed for the following costs up to the amount allocated by the department: vehicle rental, gasoline expenses, tolls, tariffs, insurance on vehicle and goods, packing materials, and auto/car/trailer hitch and lodging for nights in route to destination. Employee must submit original receipts and a memo with a general list of what was moved, i.e. two bedrooms of furniture, living room furniture, household appliances, misc. clothing, household goods, etc. All documentation should be attached to a completed Payment Request Form and sent to Purchasing.
Reimbursement will not be made for meals or hired drivers.
The move of employee's office or laboratory materials and/or equipment to USF is allowable if approved by an authorized person. This is not considered part of an employees moving expense. Employees must provide a letter from their old institution releasing the material and/or equipment and department must provide a letter accepting materials and/or equipment that is being moved. A list of equipment should be provided for Property tagging.
Payment will not be authorized for the following:
• expenses associated with unpacking of household goods or cleaning of any residence in connection with a move
• late charges
• individual travel and/or per diem or taxi fees as part of a moving expense
• the cost of replacement insurance on household goods (non-SUS
contracted mover.) The University, however, recommends that the
employee/prospective employee consider purchasing replacement cost
insurance on his/her household goods even though this cost will not be
The hiring department should submit the Employee Move Request form and obtain approval prior to the actual move.
After the move, the employee must submit to the hiring department the mover's bill of lading (invoice)
and mover's inventory
list for payment.
Reimbursement or payment for "qualified moving expenses" will not be reported as wages or other compensation of Form W-2. (See Chancellor's Memo on IRS Qualified/Non-Qualified Moving Expenses.)
"Qualified moving expenses" are the following:
• Reasonable expenses of moving household goods and personal effects from the former residence to the new residence
• If the new place of work is outside the US and its possessions,
reasonable expenses may also include the movement of household goods and
personal effects to and from storage, and the cost of storage such
goods and effects which the new place of work continues to be the
principal place of work;
• The new principal place of work is at least 50 miles farther from the
former residence than was the former principal place of work; and
• The hiring department reasonably believes the employee will be a
full-time employee at least 39 weeks during the 12- month period
immediately following the relocation.
Due to the new tax structure effective January 1, 2018, tax implications of employee moves are under advisement.
The following section only refers to moves made prior to January 1, 2018.
Payment of "non-qualified" expenses will be reported as wages on Form W-2 and all employment taxes apply.
Allowable expenses are:
1. Packing and shipping of household goods
2. Moving of an employee's privately owned mobile home
3. Extra charges for picking up household goods from more than one location as long as both locations are within the same immediate geographic area as the primary residence.
Unallowable expenses are:
1. Additional insurance on the contents of household goods beyond the normal liability of the moving company.
2. Cost of unpacking of household goods.
3. Payment for cleaning of any residence in connection with a move.
4. Payment of storage of household goods beyond 30 days will normally not be approved.
Invoice: Supporting documentation should include:
1. Household goods inventory
2. Bill of lading, including weight information
3. Location of former and new principal places of work and residence
4. Distance between former and new principal places of work and residence
Forward approved invoice and supporting documentation to Accounts Payable.
For questions regarding this process, please contact your hiring department or your Purchasing Agent
For more information regarding what information is needed to process payment for moving expenses, please contact Jeff Elliott at 813-974-3334.